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The Latest Property News
Residential Property Prices decline by 0.6% - Aug 2020
The latest figures from the Central Statistics Office (CSO) have unfolded a drop in the residential property prices by 0.6%. But the growth from August 2019 remains above that of before.
In Dublin, residential property prices have seen a slight decline by 1.6%.
- Houses decreased by 1.4%.
- Apartments increased by 0.1%.
- Highest house price growth was 1.7% in Fingal.
- Highest house price decline was 3.4% in Dublin City.
These statistics have shown that although the demand for accommodation remains high in Dublin City, it is of apartment style rather than housing with the City geographic, while the suburban area of Dublin has received a growth in price capacity.
In Cork, residential property prices have remained relatively steady:
- Carrigaline - €317,500.
- Kinsale - €344,999.
- Cork Southside - €290,000.
- Cork Northside - €239,750.
Overall the national index is 17.6% lower than the highest of 2007. However, in relation to the expected downfall from COVID-19, the property market has remained relatively strong.
Sale Prices Continue to Rise Nationally...
The Daft.ie rental report for Quarter 2, 2020 shows rents to be continually rising illustrating an annual average increase of over 2.3% on average nationwide following a heavy dip of 5.3% in April.
Dublin has seen a large increase in rental supply in recent months. Between the start of May and the end of July, the number of rented properties in Dublin this year up 92% on August 1st. In the rest of the country, it was 1.5% lower, not higher.
Analysis of the number of homes available to rent provide further insight in to the reason for the continuing rise in rental property prices with only 3,641 properties available nationwide for rent on the 1st January 2020. Back in 2006/2007 which was considered a peak time in rental prices pre the recession similar reports showed over 5,000 properties available for let at the beginning of the year. Hence it is not surprising that rents in the majority of most cities and towns in Ireland have now exceeded that of their peak in 2007.
However in reviewing both the sale and rental daft reports of 2020 thus far, one would expect there to be a change in sight with the supply of for sale properties constantly increasing. Rather than there being a short term surge in supply of properties for sale there is expected to be a continuing growth of availability with over 10,000 apartments builds summited for planning in the 1st eight month of 2020.
In reality even with the growth in supply it is most likely to take a few years for the growth in supply to impact rental prices as the current shortage of supply is so great. We provide a review of the sales market below to analyse who is expected to purchase these newly supplied homes and how they will impact the property market in general.
Residential Tenancies Board - RTB Act Changes 2019
The RTB was established in 2004 to operate a national tenancy registration system and provide a mediation and adjudication service for tenancy deputes between tenants and landlords. The board are responsible for the Residential Tenancies Act 2019 which has seen recent changes from the original 2004 Act. See changes below.
New Notice of Termination Obilgations and Procedures & New Notice Periods for Ending a Tenancy
A valid Notice of Termination is required in order to end a tenancy. If a tenancy has been less than 6 months, a landlord does not have to give a reason to end a tenancy, however, the tenant must be provided with a substantial notice of termination in writing providing a minimum notice period of 28 days. If a tenancy lasts 6 months or more, a landlord must give a reason for ending the tenancy under the grounds contained in Section 34 of the Act.
Introducion of Remedial Notices
If determined by the decision maker, a landlord or tenant shall be permitted to serve the remedial notice within 28 days of the issue of the Determination Order.
Rent Pressure Zones
Newly added excemptions:
Exemption 1: The initial setting of the rent on a dwelling which had not been rented for a period of two years prior to the immediate tenancy commencement date. All rent reviews thereafter must adhere to the Rent Pressure Zone formula.
Exemption 2: A 'substantial change' in the nature of the accommodation has been defined in the legislation and will only be deemed to have taken place where the below criteria is met.
Rent Pressure Zone Assesments:
From 4th June 2019, there are now three standardised average rents that will be used.
- Dublin areas will remain comparable to the national standarised average rent.
- The 'Greater Dublin Area' (Kildare, Wicklow, Meath), excluding Dublin, will be compared to a new criteria which is the national standardised average rent excluding Dublin.
- The rest of the country - areas outside 'The Greater Dublin Area' and Dublin - will be compared to an 'outside GDA' standardised average rent..
Extension of Rent Pressure Zones
The recent changes to the RPZ legislation extend all existing Rent Pressure Zone designations to 31 December 2021.
Extention of Rent Certainty Measures
In non-RPZ areas, landlords may review the rent only once in every 24 month period.
Changes to the legislation extended rent certainty measures meaning a rent can only be reviewed once in any 24 month period up to December 2021.
Building Energy Rating - BER Certification
In January 2009 it became compulsory that all properties being rented or sold have a Building Energy Rating Certificate (BER).
BER classifications range from A-G
A - Most energy efficient.
G - Least efficient.
This informs prospective buyers and tenants of the energy efficiency of the property. The Certification is valid for 10 years provided the building is not materially changed.
In addition to examining heating equipment and fuel used the evaluation considers property fabric, construction details, insulation of walls, roofs, floors and windows and how much air is allowed in and out of the property.
Some considerations that can vary you Energy Rating include:
- Is your roof properly insulated?
- How efficient is your boiler and heating system?
- Can your boiler be used to heat water only in the Summer months?
- Are your windows and doors fitted with draft stripping?
- How do you use your fireplace for secondary heating?
- How well insulated are your exterior walls?
Sustainable Energy Authority of Ireland (SEAI) is in charge of BER Legislation and only SEAI approved and registered BER Assessors are authorised to carry out a BER Assessment on your home.
Require an assessment of your home's energy efficiency?
Complete the BER Request Form below or Call us on 021-2416503.